THE UNDERSIDE OF DISCOUNTING FOR EVERGREEN COLORADO MORTGAGE
Last Blog we discussed Discounting and the theory behind discounting a loan. The is the other side of discounting that is primarily caused by your government, and particularly the Federal Reserve, is inflation. This is clandestine discounting and acts like an embezzler that cooks the books and steals our money while we are un-aware.
The major cause of inflation is flooding the market with fiat (printed) money. This cheapens the currency just like taking a can of concentrated orange juice and adding 10 cans of water instead of just three. By diluting the dollar we cheapen its value and destroy it’s buying power. The Dollar has lost almost 14% since Obama Geitner, and Bernake have started to print over 2 trillion dollars of fiat money. The reason your gas prices are increasing is not because of Opec, or because of a shortage of oil, but because your government is devaluing your dollar by adding 7 extra cans of water to cover their wanton spending.
Just like discounting a loan, because the present value of money is worth more than future money, so also, inflation discounts you money by destroying its buying power over time and steals the equity in your savings and assets. For instance, the same car you will buy in 2012 will cost you more even though the value of the car is the same. When it comes to your prosperity your Uncle Sam, your politicians, and the bureaucrats are you dire enemies. They are conspiring to inflate away all your cash, investments, and assets over time. This is not just a theory – this is basic economics 101.
It’s time to return to the fundamentals. If You want to prosper in these tough times you will need to earn a profit, not just depend on stock price speculation, or bond interest which is less that inflation. Now is the time to be successful; give us a call at MARK ENGLISH REAL ESTATE and DISCOUNT MORTGAGE SERVICES and let’s plan you retirement income. We are the one stop shop for all your Real Estate needs in the Rocky Mountains. Whether a home of Your own, a retirement investment, an EVERGREEN COLORADO HOME LOAN or an EVERGREEN COLORADO MORTGAGE REFINANCE call us at 303-674-0148, Email us at markenglishrealestate@msn.com, or visit us on the web at www.evergreencoloradoliving.com.